If a provision of the Beauty Bungalows franchise agreement conflicts with local law, what happens?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
e performance of all obligations under this agreement. To cancel or deliver a signed and dated copy of this cancellation notice or any other written notice to Beauty Bungalows Franchising, LLC at 257 Wake Forest Road, Costa Mesa, CA 92626 not later than after the Effective Date. transaction. | | By: | Print Name: Its: |
RHODE ISLAND
§ 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act." The FDD, the Franchise Agreement, and the Supplemental Agreements are amended accordingly to the extent required by law.
The above language has been included in this FDD as a condition to registration. The Franchisor and the Franchisee do not agree with the above language and believe that each of the provisions of the Franchise Agreement and the Supplemental Agreements, including all choice of law provisions, are fully enforceable. The Franchisor and the Franchisee intend to fully enforce all of the provisions of the Franchise Agreement, the Supplemental Agreements, and all other documents signed by them, including, but not limited to, all venue, choice-of-law, arbitration provisions and other dispute avoidance and resolution provisions and to rely on federal pre-emption under the Federal Arbitration Act.
VIRGINIA
Item 17(h). The following is added to Item 17(h):
"Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to use undue influence to induce a franchisee to surrender any right given to him under the franchise. If any provision of the Franchise Agreement or Supplemental Agreements involve the use of undue influence by the Franchisor to induce a franchisee to surrender any rights given to franchisee under the Franchise, that provision may not be enforceable."
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the FDD for Beauty Bungalows Franchising, LLC for use in the Commonwealth of Virginia shall be amended as follows:
Additional Disclosure. The following statements are added to Item 8 and Item 17.h.
Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the Franchise Agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to the 2025 Beauty Bungalows Franchise Disclosure Document, the franchise agreement's enforceability can be affected by state laws. For franchisees in Wisconsin, the Wisconsin Fair Dealership Law supersedes any conflicting provision in the franchise agreement, and the FDD and related agreements are amended accordingly. This means that if any part of the Beauty Bungalows franchise agreement clashes with Wisconsin law, the state law will take precedence, offering additional protection to the franchisee.
For Rhode Island franchisees, the Rhode Island Franchise Investment Act states that any franchise agreement provision restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of another state's laws is void concerning claims enforceable under the Act. Beauty Bungalows states that the FDD, franchise agreement, and supplemental agreements are amended to the extent required by law, although Beauty Bungalows states that it does not agree with this language and intends to enforce all provisions of the franchise agreement to the fullest extent.
In Virginia, the Virginia Retail Franchising Act makes it unlawful for Beauty Bungalows to use undue influence to induce a franchisee to surrender any rights. If any provision involves such undue influence, it may not be enforceable. Similarly, Beauty Bungalows cannot cancel a franchise without reasonable cause, and any termination grounds not constituting "reasonable cause" under Virginia law may also be unenforceable. These stipulations ensure that Beauty Bungalows franchisees in these states retain certain rights and protections under their local laws, regardless of what the standard franchise agreement might state. Prospective franchisees should consult with a legal professional to understand the specific implications of these state laws on their franchise agreement.